Excel IPMT Function
This post will guide you how to use Excel IPMT function with syntax and examples in Microsoft excel.
Description
The Excel IPMT function used to calculate the interest payment for an investment based on a constant payment schedule and a constant interest rage.
The IPMT function is a buildin function in Microsoft Excel and it is categorized as a Financial Function.
The IPMT function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.
Syntax
The syntax of the IPMT function is as below:
= IPMT (rate, per, nper, pv, [fv], [type])
Where the IPMT function arguments are:
 Rate This is a required argument. The interest rate per period.
 Per – This is a required argument. The period for which you want to find the interest. And it must be an integer number between 1 and nper value.
 Nper– This is a required argument. The total number of payment periods for the annuity.
 Pv – This is a required argument. The present value of the payments.
 FV– This is an optional argument. The Future value of the loan/investment at the end of nper payments. If it is omitted, it will be set the default value as 0.
 Type – This is an optional argument. It indicates when the payments are due. And if the type argument is omitted, it will be set as 0. And the Type argument can have two value 0 or 1.
Set type equal to  If payments are due 
0  At the end of the period 
1  At the beginning of the period 
Note:
 The units for rate and nper should be consistent. If you make monthly payments on a fouryear loan at 12 percent annual interest, and you should use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, you need to use 12% for rate and 4 for nper.
 For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.
Excel IPMT Function Examples
The below examples will show you how to use Excel IPMT Function to calculate the interest payment based on a specific period of an investment with a constant interest rage.
#1 to get the interest payment due in the first mount for an investment, using the following formula:
= IPMT(B1/12,B2,B3*12,B4,B5)
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